A Guide to Import Used Cars from China to Ethiopia in 2024

As an international trader, Ethiopia is an inspiring opportunity to import used cars, especially from China. Below is a businesslike and clear guide to all you need to get the hang:

Taxation:

For instance, you buy a gasoline used passenger car from China distributed to Ethiopia with an engine scale ranging:

- For used passenger vehicles with engine displacement smaller than 1300cc, the Duty Rate is 35%, the Excise Tax rate is 30%, the Value Added Tax rate is 15%, the Surtax rate is 10%, and the Withholding Tax rate is 3%.

- For used passenger vehicles with 1300cc-1800cc engines: the Duty Rate is 35%, the Excise Tax rate is 60%, the Value Added Tax rate is 15%, the Surtax rate is 10%, and the Withholding Tax rate is 3%.

- For used passenger vehicles with engine displacement larger than 1800cc, the Duty Rate is 35%, the Excise Tax rate is 100%, the Value Added Tax rate is 15%, the Surtax rate is 10%, and the Withholding Tax rate is 3%.

If you buy a gasoline used commercial car from China distributed to Ethiopia with an engine displacement ranging:

- For used commercial vehicles with engine displacement smaller than 1300cc, the Duty Rate is 10%, the Excise Tax rate is 0%, the Value Added Tax rate is 15%, the Surtax rate is 10%, and the Withholding Tax rate is 3%.

- For used commercial vehicles with 1300cc-1800cc engines: the Duty Rate is 10%, the Excise Tax rate is 0%, the Value Added Tax rate is 15%, the Surtax rate is 10%, and the Withholding Tax rate is 3%.

- For used commercial vehicles with engine displacement larger than 1800cc, the Duty Rate is 10%, the Excise Tax rate is 0%, the Value Added Tax rate is 15%, the Surtax rate is 10%, and the Withholding Tax rate is 3%.

- For used battery electric commercial vehicles, the Duty Rate is 10%, the Excise Tax rate is 0%, the Value Added Tax rate is 0%, the Surtax rate is 0% and the Withholding Tax rate is 3%.

As for electric vehicles,  Alemu Sime, the Ethiopian Minister of Transport and Logistics, announced that the government had decided to allow only electric vehicles into the country in a statement on February 6 2024. Therefore the country is banning gasoline and diesel-powered cars.

Ethiopia reportedly has about 7,200 EVs out of 1.2 million cars running on its roads.

The current import policy on electric vehicles in Ethiopia is：

- For used battery electric passenger vehicles, the Duty Rate is 15%, the Excise Tax rate is 0%, the Value Added Tax rate is 0%, the Surtax rate is 0% and the Withholding Tax rate is 3%.

- CKD: Duty-free import of EV parts for assembly within Ethiopia.

- SKD: 5% tax on partially assembled EVs.

IT IS IMPORTANT FOR BOTH ETHIOPIAN IMPORTERS AND CHINESE EXPORTERS TO KEEP UP TO DATE ON THIS MAJOR POLICY CHANGE.

Simple Steps of Importing:

- Pick the right vehicle: Make sure that the car is left-hand drive and fits Ethiopia's environmental and safety standards. AutoCango.com can be your first choice in sourcing and buying reliable Chinese used cars.

- Documentation: When your car about to reach the port, prepare your vehicle's purchase invoice, proof of ownership, and other relevant documents before the shipping date.

- Custom policies: Get to know how Ethiopian customs work. Interview a clearing agent to help with this process. You can also inquire AutoCango for the latest news of Ethiopian import policies on used cars.

- Payment: Ensure all modes of payment comply with the rules of Ethiopian customs systems.

Market Dynamics for Electric Vehicles from China:

Ethiopia needs cheap transportation. It is an ideal choice that answers to affordability and regularly updated government regulations play a facilitator to live trade. Consider importing electric vehicles from China to maximize your business benefits.

China has the largest automobile market in the world. With no age restrictions on used cars, Ethiopian importers can select from a wide range, meeting various needs and budgets, especially on electric vehicles. Ethiopian consumers will benefit from the most competitive automotive market in China, where quality meets affordability. It's a strategic move that connects Ethiopian buyers to a global market.

Final Thoughts:

Understanding Ethiopia's structured import policies is very necessary to a successful transaction. By considering these guidelines and the market trend mentioned above, Ethiopians can confidently import used cars from China, enhancing their mobility and driving economic growth.

With this guide we hope to have made the import of used cars from China into Ethiopia more accessible and understandable. Happy importing!

Please note that used car import tax rates and policies may change over time or be adjusted according to the latest regulations from the government. Therefore, it is advisable to confirm the most current tax information with relevant tax and customs authorities before importing.